The initial term of the agreement runs through the release of ten titles,
anticipated to be distributed over the next nine months. The agreement
also calls for a significant guaranteed upfront royalty to Strategy First
for these European rights.

Stewart Braybrook, Strategy First's Director of European Operations, said,
"We are justifiably pleased to have entered into this far-reaching
arrangement with one of the premier publishing and distribution
organizations in Europe. We anticipate that this will be the beginning of
a long and satisfactory partnership that will strengthen the marketplace
presence of both companies."

This important European initiative with Lago places Strategy First squarely
in the ranks of many of the industry's leading PC game makers. Black Bean
is the game label of Lago, srl, the publishing arm of Leader Group; one of
the leading videogame companies in Italy. Black Bean was first launched in
December 2004 and with the release of major titles such as; "SCAR: Squadra
Corse Alfa Romeo" and the strategy / RPG title "Rising Kingdoms," has since
established major publishing and distribution partnerships across Europe.
Black Bean's main goal is to strengthen and diversify their product line
and to establish themselves as a leading publisher in the European market.

"Our new publishing and distribution arrangement with Strategy First
significantly increases our importance to the entire European marketplace,
and we are excited by the potential offered by this deal. Strategy First's
growing palette of new and groundbreaking strategy titles, coupled with our
new thrust into the rest of Europe, provides an excellent basis for
commercial success," said Virgilio Bixio, Lago's Managing Director. "We've
put in place the critical components for a promising commercial venture."

Commenting on the new agreement, Clive Kabatznik, President and CEO of
Silverstar Holdings, said, "Forging this kind of important strategic
relationship underscores the growing strength of Strategy First in both
title selection and international presence. Partnering with one of
Europe's leading software distributors provides an excellent platform for
our future West European distribution. This relationship, along with our
strong network in Eastern Europe, positions Strategy First as a publisher
of choice for developers seeking a strong international distributor for
their products."

About Lago/Black Bean

Black Bean is the games label of Lago srl, which is part of the Leader
Group. Leader SpA has been the leading independent distributor in Italy
since it started business in 1984. Leader is based in Gazzada (Varese)
which is situated 30 miles north of Milan in northern Italy. Black Bean
philosophy is to focus on a wide range of games genre leveraging on the
niche targets that remain uncovered into the market. By adding original
content to the products and by fully localising the titles Black Bean's
vision is to remain close to player's needs. Black Bean has distribution
partners all across Europe and PAL territories including Australia and
South Africa.

About Strategy First

Strategy First, Inc. is a leading developer and worldwide publisher of
entertainment software for the PC. Founded in 1990, the Company has grown
rapidly, publishing major games in the industry such as "Supreme Ruler
2010" and "Disney's Aladdin Chess Adventures" and simultaneously developing
its own in-house titles such as "O.R.B." and "Disciples II." After winning
numerous awards for games such as "Disciples: Sacred Lands," "Kohan:
Immortal Sovereigns," "Steel Beasts," "Galactic Civilizations," and
"Jagged Alliance," Strategy First continues to push the gaming envelope
with its own groundbreaking titles, while maintaining its reputation as a
unique alternative for independent developers seeking to market their games
to a worldwide audience. www.strategyfirst.com

About Silverstar Holdings

Silverstar Holdings Ltd. is a publicly traded company, focusing on
acquiring controlling positions in high growth fee-based electronic game
businesses that stand to benefit from the economies of scale generated by
Internet and other technology-related platforms. It currently owns Fantasy
Sports, Inc., a dominant provider of fee-based NASCAR related and other
fantasy sports games, Strategy First Inc., a leading developer and
worldwide publisher of entertainment software for the PC, as well as a
stake in Magnolia Broadband, a fab-less semiconductor company and innovator
of radio frequency (RF) solutions for the cellular industry.
www.silverstarholdings.com

The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties, including but not limited to risks associated with the
uncertainty of future financial results, additional financing requirements,
development of new products, regulatory approval processes, the impact of
competitive products or pricing, technological changes, the effect of
economic conditions and other uncertainties detailed in the company's
filings with the Securities and Exchange Commission.